XYZ Company adopted the dollar value LIFO inventory method on 1/1/15. The company’s inventory on that date was $400,000, which is considered the base LIFO layer. Additional data about the company appear below.
Year |
December 31 inventory at end-of-year prices |
Price Index |
1/1/2015 |
$400,000 |
100 |
12/31/2015 |
498,000 |
110 |
12/31/2016 |
516,000 |
121 |
Calculate ending inventory using the dollar value LIFO method at 12/31/16. SHOW ALL OF YOUR WORK.
Ending Inventory as on 12/31/16 => $429,091.
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